Kartik JainVeer Narmad South Gujarat University
Doc Inmaking is trying to identify a clear colorless solvent. The possible identities are toluene (density = 0.867g / m * L) , ethanol (density = 0.789g / m * L) , and chloroform (density = 1.483g / m * L) . He obtains an experimental density of 0.81 plus/minus 0.03g / m * L . What is the most likely identity of his sample? Is his experimental value sufficiently accurate?
We are evaluating a project that costs $848,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 48,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $625,000 per year. The tax rate is 35 percent, and we require a return of 20 percent on this project. Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.
Calculate the best-case and worst-case NPV figures.